28 Jul 2015
NZD/USD bids broken down to 0.6600
FXStreet (Guatemala) - NZD/USD is currently trading at 0.6602 with a high of 0.6608 and a low of 0.6598.
NZD/USD is making a minor recovery from the base of the 0.65 handle but has been struggling in the vicinity of the 0.6620 level. The greenback was performing well vs the commodity sector currencies and is now testing the 0.66 level in early Asia ahead of Tokyo that will kick into action a little later. The day ahead for Asia is quiet and there is nothing for NZ this week to take note of on a back drop of a dovish RBNZ.
The calendar is more about the US economy, while Durable Goods has already been released and beating expectations supporting the greenback. So, we are left with the FOMC and GDP. In respect of the main event, the FOMC, this will be the last meeting before September where a majority of economists predict a rate hike. The accompanying statement is unlikely to allude to a hike in September according to analysts at Brown Brothers Harriman. Nevertheless, volatility can be expected around the event but given the back-drop of an economy that is doing what it is meant to be doing in the mind of the Fed, a bullish statement may see further downside in NZD/USD this week.
NZD/USD sold back along multi-month trendline
Technically, NZD/USD continues to be in a multi-month downtrend headed for 0.6400 on further continuations. The 15th July low at 0.6498 comes as first target once 0.66 has broken down and on a break of the current support line of 0.6560.
NZD/USD is making a minor recovery from the base of the 0.65 handle but has been struggling in the vicinity of the 0.6620 level. The greenback was performing well vs the commodity sector currencies and is now testing the 0.66 level in early Asia ahead of Tokyo that will kick into action a little later. The day ahead for Asia is quiet and there is nothing for NZ this week to take note of on a back drop of a dovish RBNZ.
The calendar is more about the US economy, while Durable Goods has already been released and beating expectations supporting the greenback. So, we are left with the FOMC and GDP. In respect of the main event, the FOMC, this will be the last meeting before September where a majority of economists predict a rate hike. The accompanying statement is unlikely to allude to a hike in September according to analysts at Brown Brothers Harriman. Nevertheless, volatility can be expected around the event but given the back-drop of an economy that is doing what it is meant to be doing in the mind of the Fed, a bullish statement may see further downside in NZD/USD this week.
NZD/USD sold back along multi-month trendline
Technically, NZD/USD continues to be in a multi-month downtrend headed for 0.6400 on further continuations. The 15th July low at 0.6498 comes as first target once 0.66 has broken down and on a break of the current support line of 0.6560.